'Samsungh BioLogics Surpasses 3 Trillion Won in Annual Orders... "Annual Operating Profit 1 Trillion Won" Forecast'

Contract of 588.8 Billion KRW with Asian Pharmaceutical Companies
Cumulative Orders Reach 3.4867 Trillion KRW... Doubled Last Year

Strong Performance Expected with Full Effect of 4th Factory
Sales Expected to Surpass 3.6 Trillion KRW and Operating Profit 1 Trillion KRW

Samsung Biologics has successfully signed new and increased contract manufacturing organization (CMO) agreements worth 760 billion KRW, achieving the milestone of 'annual orders exceeding 3 trillion KRW' for the first time in its history. As the effect of the world's largest production plant, Plant 4, begins to take full effect, there is growing anticipation that the company will record strong performance with sales of 3.6 trillion KRW and operating profit of 1 trillion KRW.

John Rim, CEO of Samsung Biologics [Photo by Lee Chun-hee]

On the 28th, Samsung Biologics announced that it signed one new contract worth 451.28 million USD (approximately 588.8 billion KRW) and four increased contracts totaling 135.96 million USD (approximately 172 billion KRW) with a customer identified as an 'Asia-based pharmaceutical company.' However, the company stated that due to confidentiality agreements with the customer, it cannot disclose whether all the Asia-based pharmaceutical companies are the same entity.

With an additional order amount of 760.8 billion KRW on this day, Samsung Biologics' cumulative orders for this year reached 3.4867 trillion KRW (approximately 2.691 billion USD), surpassing 3 trillion KRW for the first time ever. This represents nearly a twofold increase compared to last year's order amount of 1.7835 trillion KRW (approximately 1.372 billion USD).

The goal of securing customers among the global top 20 big pharma companies is also progressing smoothly this year. In 2018, Samsung Biologics had only three such customers, but this year it has welcomed two new big pharma partners, bringing the total to 14 customers including Bristol-Myers Squibb (BMS), Pfizer, GlaxoSmithKline (GSK), AstraZeneca (AZ), Johnson & Johnson (J&J), Eli Lilly, Merck & Co. (MSD), and Roche. Notably, GSK, Eli Lilly, and Pfizer have continued to show steady trust by signing increased contracts with Samsung Biologics this year as well.

John Rim's leadership is also credited for this 'customer satisfaction.' Rim prioritizes customer satisfaction, responds swiftly to market and customer demands, and continuously pursues challenges and changes. Thanks to these efforts, Samsung Biologics was recently ranked second in the healthcare & life sciences sector in the 'World's Most Trusted Companies' survey.

Strong performance fueled by large-scale production facility expansion... Expectation for 'first operating profit of 1 trillion KRW'

Samsung Biologics' order growth is led by Plant 4, which began full operation in June. With a production capacity of 240,000 liters, it is the world's largest single plant production facility. Since its operation, large-scale orders mainly from big pharma have increased, resulting in a high utilization rate.

Incheon Songdo Samsung Biologics Plant 4 Overview [Photo by Samsung Biologics]

Thanks to the effect of Plant 4, Samsung Biologics is one of the few global contract development and manufacturing organization (CDMO) companies that has continuously raised its sales guidance. In January, it projected 10-15% growth compared to the previous year, then raised the guidance to 15-20% in April, and last month further increased it to 20%, presenting a sales forecast of 3.6016 trillion KRW.

Cumulative sales through the third quarter reached 2.6211 trillion KRW, and especially with third-quarter sales exceeding 1 trillion KRW at 1.034 trillion KRW, expectations are high that the company will achieve this goal smoothly. The cumulative operating profit for the third quarter also grew 14% year-on-year to 763.7 billion KRW, fueling anticipation for the first-ever annual operating profit of 1 trillion KRW. Securities firms forecast Samsung Biologics' performance this year at sales of 3.6589 trillion KRW and operating profit of 1.0726 trillion KRW.

Continued production capacity expansion... Targeting 1,324,000 liters by 2032

Samsung Biologics is not stopping there and continues to increase production capacity. With Plant 4 fully operational, the total production capacity stands at 604,000 liters, securing an overwhelming world No.1 position. To proactively respond to market demand, the company broke ground in April on Plant 5, which will have a capacity of 180,000 liters and is scheduled for completion in April 2025. The company explained, "As order volume rapidly increases, concerns about 'overcapacity' previously raised in the market are being dispelled. We are securing production capacity in advance through proactive investment amid the rapid surge in global biopharmaceutical demand."

Additionally, within the second bio campus where Plant 5 is located, the company plans to build three more plants of the same type and scale, aiming to secure a total production capacity of 1,324,000 liters by 2032. Plants 5 through 8 will be constructed using a 'copy & paste' method to enhance construction efficiency by replicating the same design.

Incheon Songdo Samsung Biologics Plant 5 construction site. The company aims to complete it by April 2025.
[Photo by Samsung Biologics]

Samsung Biologics also plans to accelerate not only plant construction but actual development and production. Through process innovation, the company has shortened the technology transfer period essential for biopharmaceutical production to three months, which is about half the industry average. Furthermore, even when urgent volume requests arise under tight schedules, the company maintains flexible and swift responses to meet production timelines, thereby achieving high customer satisfaction.

In terms of quality, Samsung Biologics aims to maintain an overwhelming advantage based on a 'super-gap.' The company's batch success rate exceeds 98%, and as of this month, it has accumulated 248 regulatory approvals, demonstrating its quality management capabilities.

This content was produced with the assistance of AI translation services.